In America, it's clear the sub-prime housing crisis and looming recession has had dire consequences for the average American. Only the super-wealthy appear to be untouchable as insolvency, debt, house repossession and bankruptcies touch on the lives of the average earner. And in the UK, the British press are full of headlines and stories predicting the British economy is on a downward slide, fast in the footsteps of their American cousins. Insolvency figures are rising as consumers and homeowners battle against attacks from all sides on their bank balances: rising food costs, soaring fuel and petrol prices, an increase in the cost of clothing, raises in bank charges, and refusal of loans and affordable credit set against plummeting house prices means the outlook is bleak.

Insolvency hits Italian Families

But it isn't just the UK and USA that are struggling with insolvency. In Italy, it's been reported that 110 thousand families are at risk of insolvency. The astounding figure has been blamed on expensive mortgages in the country. In addition, it's been estimated that another 420 thousand families are in financial difficulty. The figures were put forward by  Antonio Catricalà Chairman of the Italian antitrust association. He was quoted during a conference on the subject of 'the Objective Transparency of Loans': "We are a country which risks being indebted and our savers are amongst the most virtuous in Europe but we need to intervene in order to safeguard our citizens." Insolvency is an increasing worry for countries with difficult and struggling housing markets.

Insolvency Activity Down Under

In Australia, statistics have been released by a government agency, Insolvency and Trustee Service Australia (ITSA) that shows personal insolvency rates in Australia or on the rise. Insolvency activity increased by 1.04% in the March 2008 quarter compared to the previous quarter and overall the current financial year has seen an increase of 1.49% insolvencies. Insolvency activity, including bankruptcy, is thought to be a result of easy credit and unemployment in Australia. A spokesman from the ITSA told The Australian Financial Review: "People who file personal bankruptcies and debt agreements give excessive use of credit and unemployment as the two main causes they attribute to their circumstances." Statistics show a massive rise in credit card debt in the past seven years in the country – credit card debt accounted for 11% of insolvency activity seven years ago – it  has now risen to 27%.

Speak to Varden Nuttall About Insolvency

Varden Nuttall has been established for over 15 years and is dedicated to helping people in financial difficulty find a debt management solution through an Individual Voluntary Arrangement (IVA). Employing 90 people, including trained and skilled IVA administrators, we are one of the largest IVA companies in the UK and handle over 3% of all IVA applications. To find out more about the company, or to make an appointment to talk about putting an IVA in place, call us today on 0870 977 8100 or fill in our online enquiry form.